PRACTICE EXERCISE 1: Complete the table. Prepare the Sales Budget of ABC Company. Complete the table using the following information. ABC Company had sales record during the first quarter. However, in the second quarter of 2020 the company was suffered due to Covid-19 Pandemic and had sales of only 25% based on the first quarter. With the "new normal" condition of the country, the company is expecting to double sales in the third quarter and a triple sales on the fourth quarter based on the second quarter sales. All other data remain the same. Sales Budget of ABC Company For the Year Ended December 31, 2020 Quarter 2 Quarter 3 Particulars A Sales unit (Forecasted) B Price per unit CTotal Gross sales (AxB) D Sales Discounts & allowances (2% of Gross Sales) E Total Net Sales (C-D) Quarter 1 Quarter 4 5, 000 P30 P150, 000 P3, 000 P147, 000
Master Budget
A master budget can be defined as an estimation of the revenue earned or expenses incurred over a specified period of time in the future and it is generally prepared on a periodic basis which can be either monthly, quarterly, half-yearly, or annually. It helps a business, an organization, or even an individual to manage the money effectively. A budget also helps in monitoring the performance of the people in the organization and helps in better decision-making.
Sales Budget and Selling
A budget is a financial plan designed by an undertaking for a definite period in future which acts as a major contributor towards enhancing the financial success of the business undertaking. The budget generally takes into account both current and future income and expenses.
Prepare the Sales Budget of ABC Company. Complete the table using the following information.
ABC Company had sales record during the first quarter. However, in the second quarter of 2020
the company was suffered due to Covid-19 Pandemic and had sales of only 25% based on the
first quarter. With the “new normal” condition of the country, the company is expecting to double
sales in the third quarter and a triple sales on the fourth quarter based on the second quarter
sales. All other data remain the same.
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